The Gabelli Equity Trust Inc. (GAB) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number        811-04700            

                    The Gabelli Equity Trust Inc.                    

(Exact name of registrant as specified in charter)

One Corporate Center

                         Rye, New York 10580-1422                        

(Address of principal executive offices) (Zip code)

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

                    Rye, New York 10580-1422                    

(Name and address of agent for service)

Registrant’s telephone number, including area code:  1-800-422-3554

Date of fiscal year end:  December 31

Date of reporting period:  June 30, 2014

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

The Gabelli Equity Trust Inc.

Semiannual Report — June 30, 2014

(Y)our Portfolio Management Team

To Our Shareholders,

For the six months ended June 30, 2014, the net asset value (“NAV”) total return of The Gabelli Equity Trust Inc. (the “Fund”) was 5.4%, compared with total returns of 7.1% and 2.7% for the Standard & Poor’s (“S&P”) 500 Index and the Dow Jones Industrial Average, respectively. The total return for the Fund’s publicly traded shares was 1.2%. The Fund’s NAV per share was $7.31, while the price of the publicly traded shares closed at $7.53 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed are the schedule of investments and financial statements as of June 30, 2014.

Comparative Results

Average Annual Returns through June 30, 2014 (a) (Unaudited)
	Year to Date			1 Year			5 Year			10 Year			20 Year			25 Year			Since Inception (08/21/86)
Gabelli Equity Trust NAV Total Return (b)		5.44	%		26.98	%		24.77	%		11.15	%		10.94	%		10.19	%		11.44%
Investment Total Return (c)		1.18			23.55			22.53			11.28			10.52			10.53			11.21
S&P 500 Index		7.14			24.61			18.83			7.78			9.79			9.89			10.13(d)
Dow Jones Industrial Average		2.66			15.46			17.76			7.62			10.49			10.75			11.01(d)
Nasdaq Composite Index		6.18			30.98			20.57			9.20			9.58			9.71			9.17(d)

(a)	Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Dow Jones Industrial Average is an unmanaged index of 30 large capitalization stocks. The S&P 500 and the Nasdaq Composite Indices are unmanaged indicators of stock market performance. Dividends are considered reinvested except for the Nasdaq Composite Index. You cannot invest directly in an index.
(b)	Total returns and average annual returns reflect changes in the NAV per share, reinvestment of distributions at NAV on the ex-dividend date, adjustments for rights offerings, spin-offs, and taxes paid on undistributed long term capital gains and are net of expenses. Since inception return is based on an initial NAV of $9.34.
(c)	Total returns and average annual returns reflect changes in closing market values on the NYSE, reinvestment of distributions, and adjustments for rights offerings, spin-offs, and taxes paid on undistributed long term capital gains. Since inception return is based on an initial offering price of $10.00.
(d)	From August 31, 1986, the date closest to the Fund’s inception for which data is available.

Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of total investments as of June 30, 2014:

The Gabelli Equity Trust Inc.

Food and Beverage	11.3%
Financial Services	8.4%
Cable and Satellite	8.0%
Entertainment	7.8%
Equipment and Supplies	6.7%
Diversified Industrial	5.6%
Energy and Utilities	5.6%
Health Care	4.3%
Automotive: Parts and Accessories	4.3%
Consumer Products	3.8%
Consumer Services	3.2%
Telecommunications	3.2%
Retail	3.1%
Aerospace and Defense	2.6%
Business Services	2.5%
Aviation: Parts and Services	2.5%
Machinery	2.4%
Specialty Chemicals	1.9%
Hotels and Gaming	1.8%
Broadcasting	1.7%

Publishing	1.4	%
Electronics	1.1	%
Environmental Services	0.9	%
Wireless Communications	0.9	%
Computer Software and Services	0.7	%
Agriculture	0.7	%
Communications Equipment	0.7	%
Automotive	0.6	%
Metals and Mining	0.6	%
Transportation	0.5	%
Real Estate	0.4	%
Closed-End Funds	0.3	%
Building and Construction	0.2	%
Real Estate Investment Trusts	0.1	%
Computer Hardware	0.1	%
Manufactured Housing and Recreational Vehicles	0.1	%
	100.0	%

The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

Proxy Voting

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

2

The Gabelli Equity Trust Inc.

Portfolio Changes — Quarter Ended June 30, 2014 (Unaudited)

	Shares			Ownership at June 30, 2014
NET PURCHASES
Common Stocks
Alere Inc.		3,000			10,000
Aramark		7,500			20,500
Blyth Inc.		15,200			112,200
Cable & Wireless Communications plc		2,150,000			3,000,000
Chemtura Corp.		10,000			15,000
Chr Hansen Holding A/S		2,000			2,000
Cliffs Natural Resources Inc.		12,000			12,000
ConAgra Foods Inc.		20,000			80,000
Cullen/Frost Bankers Inc.		10,000			10,000
Danone SA(a)		5,975			210,475
DaVita HealthCare Partners Inc.		2,000			15,000
Deutsche Bank AG		2,777			12,777
Donaldson Co. Inc.		2,000			374,800
Energizer Holdings Inc.		5,500			95,500
Express Scripts Holding Co.		1,000			25,000
Forest City Enterprises Inc., Cl. A		3,000			35,000
General Mills Inc.		4,000			53,000
Hospira Inc.		200			30,000
Intelsat SA		3,000			15,000
International Flavors & Fragrances Inc.		4,000			69,000
International Game Technology		40,000			90,000
Janus Capital Group Inc.		1,000			266,000
Koninklijke Philips NV(b)		1,102			33,087
Layne Christensen Co.		3,000			23,000
Liberty Ventures, Cl. A(c)		15,451			30,902
Loews Corp.		4,000			14,000
Millicom International Cellular SA, SDR		5,000			22,000
Murphy USA Inc.		2,501			20,000
Pentair plc(d)		35,000			35,000
Rayonier Advanced Materials Inc.(e)		9,667			9,667
Rolls-Royce Holdings plc, Cl. C(f)		160,800,000			160,800,000
The Hillshire Brands Co.		92,800			330,000
The New Germany Fund Inc.		3,898			96,529
Time Inc.(g)		18,850			18,850
Time Warner Inc.		1,600			186,800
Trinity Industries Inc.(c)		28,200			56,400
Vodafone Group plc, ADR		3,300			41,482
Weatherford International plc(h)		35,000			35,000
Whole Foods Market Inc.		3,000			38,000
NET SALES
Common Stocks
AMC Networks Inc., Cl. A		(2,800	)		270,200

	Shares			Ownership at June 30, 2014
American Express Co.		(3,000	)		421,000
Argo Group International Holdings Ltd.		(700	)		12,500
Barrick Gold Corp.		(600	)		54,000
Beam Inc.(i)		(173,200	)		—
Becton, Dickinson and Co.		(300	)		12,500
BorgWarner Inc.		(1,000	)		116,600
BT Group plc, Cl. A		(11,600	)		988,400
Cisco Systems Inc.		(1,400	)		54,000
Citigroup Inc.		(8,500	)		98,000
Covidien plc		(1,800	)		47,200
Crane Co.		(3,500	)		198,200
Curtiss-Wright Corp.		(8,000	)		270,300
Deere & Co.		(2,000	)		320,000
DIRECTV		(19,000	)		374,200
Discovery Communications Inc., Cl. A		(1,000	)		78,600
Flowserve Corp.		(2,600	)		274,600
Gray Television Inc.		(1,000	)		25,000
Honeywell International Inc.		(4,000	)		359,000
HSN Inc.		(800	)		25,100
Huntsman Corp.		(16,000	)		8,000
IAC/InterActiveCorp.		(1,000	)		45,000
Ingredion Inc.		(800	)		17,000
Intel Corp.		(19,000	)		60,000
Leucadia National Corp.		(3,200	)		95,900
Liberty Media Corp., Cl. A		(1,000	)		89,000
LSI Corp.(j)		(45,000	)		—
Marathon Oil Corp.		(6,000	)		4,000
Marathon Petroleum Corp.		(2,000	)		4,000
MasterCard Inc., Cl. A		(5,000	)		342,000
Modine Manufacturing Co.		(2,000	)		198,000
Monster Worldwide Inc.		(10,000	)		—
Newmont Mining Corp.		(800	)		143,600
Niko Resources Ltd.		(1,000	)		1,000
Novartis AG, ADR		(1,600	)		88,200
Oi SA, ADR		(20,000	)		309,500
Palo Alto Networks Inc.		(1,500	)		—
Park-Ohio Holdings Corp.		(1,000	)		89,000
Pentair Ltd.(d)		(37,400	)		—
Phillips 66		(35,000	)		12,200
Post Holdings Inc.		(600	)		42,300
Precision Castparts Corp.		(2,500	)		78,500
Reckitt Benckiser Group plc		(4,100	)		46,800
Rollins Inc.		(3,000	)		1,210,000
Skyline Corp.		(2,000	)		53,000
Spectra Energy Corp.		(2,200	)		108,900
Swedish Match AB		(10,000	)		813,800
The Charles Schwab Corp.		(5,000	)		20,000

See accompanying notes to schedule of investments.

3

The Gabelli Equity Trust Inc.

Portfolio Changes (Continued) — Quarter Ended June 30, 2014 (Unaudited)

	Shares			Ownership at June 30, 2014
The Coca-Cola Co.		(10,000	)		122,600
The St. Joe Co.		(1,000	)		188,500
The Timken Co.		(15,000	)		85,000
The WhiteWave Foods Co.		(1,347	)		42,000
Time Warner Cable Inc.		(1,000	)		78,000
Verizon Communications Inc.		(580	)		139,630
Walgreen Co.		(800	)		52,000
Watts Water Technologies Inc., Cl. A		(5,000	)		132,000
Weatherford International Ltd.(h)		(35,000	)		—
William Demant Holding A/S		(1,000	)		54,500
Preferred Stock
Cincinnati Bell Inc.		(500	)		21,000

(a) Stock Dividend - 188,000 shares received dividends. 0.031784 shares for every 1 share held.

(b) Stock Dividend - 0.034454 shares for every 1 share held.

(c) Stock Split - 2 shares for every 1 share held.

(d) Reincorporation and identifier change from Pentair Ltd. (H6169Q108) to Pentair plc (G7S00T104). 2,400 shares were sold after reincorporation and identifier change.

(e) Spin-off - 1 share of Rayonier Advanced Materials Inc. for every 3 shares of Rayonier Inc. held.

(f) Stock dividend - 134 shares of Rolls-Royce Holdings plc, Cl. C for every 1 share of Rolls-Royce Holdings plc held.

(g) Spin-off - 0.125 shares of Time Inc. for every 1 share of Time Warner Inc. held. 4,500 shares were sold after spin-off.

(h) Reincorporation and identifier change from Weatherford International Ltd. (H27013103) to Weatherford International plc (G48833100).

(i) Tender Offer - $83.50 cash for every 1 share held. 58,800 shares were purchased before tender offer.

(j) Tender Offer - $11.15 cash for every 1 share held.

See accompanying notes to schedule of investments.

4

The Gabelli Equity Trust Inc.

Schedule of Investments — June 30, 2014 (Unaudited)

Shares			Cost		Market Value
		COMMON STOCKS — 99.8%
		Food and Beverage — 11.3%
	52,500	Brown-Forman Corp., Cl. A	$	1,761,167	$	4,847,850
	18,675	Brown-Forman Corp., Cl. B		1,064,826		1,758,625
	63,800	Campbell Soup Co.		1,781,130		2,922,678
	2,000	Chr Hansen Holding A/S		87,363		84,226
	15,000	Coca-Cola Enterprises Inc.		275,289		716,700
	80,000	ConAgra Foods Inc.		2,752,901		2,374,400
	30,600	Constellation Brands Inc., Cl. A†		383,791		2,696,778
	18,000	Crimson Wine Group Ltd.†		91,848		162,900
	210,475	Danone SA		10,219,967		15,632,157
	652,800	Davide Campari-Milano SpA		3,566,380		5,649,317
	25,000	Dean Foods Co.		448,232		439,750
	192,500	Diageo plc, ADR		8,913,966		24,499,475
	89,800	Dr Pepper Snapple Group Inc.		2,143,930		5,260,484
	80,000	Flowers Foods Inc.		263,976		1,686,400
	76,200	Fomento Economico Mexicano SAB de CV, ADR		1,023,214		7,136,130
	53,000	General Mills Inc.		1,636,728		2,784,620
	1,848,400	Grupo Bimbo SAB de CV, Cl. A		2,624,249		5,404,078
	40,700	Heineken NV		1,918,423		2,921,951
	17,000	Ingredion Inc.		243,240		1,275,680
	105,000	ITO EN Ltd.		2,422,898		2,691,723
	12,800	Kellogg Co.		475,305		840,960
	64,000	Kerry Group plc, Cl. A		735,609		4,782,254
	45,333	Kraft Foods Group Inc.		1,402,246		2,717,713
	10,600	LVMH Moet Hennessy Louis Vuitton SA		365,943		2,043,653
	272,000	Mondelēz International Inc., Cl. A		7,303,369		10,229,920
	70,000	Morinaga Milk Industry Co. Ltd.		299,202		252,209
	39,100	Nestlé SA		1,550,397		3,029,060
	217,600	PepsiCo Inc.		12,159,446		19,440,384
	39,200	Pernod Ricard SA		3,228,300		4,707,435
	42,300	Post Holdings Inc.†		675,125		2,153,493
	40,500	Remy Cointreau SA		2,383,895		3,726,133
	122,600	The Coca-Cola Co.		2,988,367		5,193,336
	17,000	The Hain Celestial Group Inc.†		227,968		1,508,580
	330,000	The Hillshire Brands Co.		13,367,076		20,559,000
	3,000	The J.M. Smucker Co.		149,101		319,710
	42,000	The WhiteWave Foods Co.†		696,348		1,359,540
	136,269	Tootsie Roll Industries Inc.		1,911,993		4,011,759
	50,000	Tyson Foods Inc., Cl. A		421,291		1,877,000
	341,000	Yakult Honsha Co. Ltd.		9,700,538		17,267,953
				103,665,037		196,966,014
		Financial Services — 8.4%
	421,000	American Express Co.(a)		22,545,105		39,940,270
	12,500	Argo Group International Holdings Ltd.		408,439		638,875
	72,000	Banco Santander SA, ADR		545,542		750,240
	127	Berkshire Hathaway Inc., Cl. A†		544,374		24,117,364

Shares			Cost		Market Value
	10,000	Calamos Asset Management Inc., Cl. A	$	88,164	$	133,900
	18,800	CIT Group Inc.		776,644		860,288
	98,000	Citigroup Inc.		3,543,672		4,615,800
	10,000	Cullen/Frost Bankers Inc.		776,987		794,200
	12,777	Deutsche Bank AG		542,318		449,495
	10,000	Fortress Investment Group LLC, Cl. A		49,694		74,400
	20,400	H&R Block Inc.		353,425		683,808
	40,000	Interactive Brokers Group Inc., Cl. A		643,310		931,600
	266,000	Janus Capital Group Inc.		2,785,475		3,319,680
	56,800	JPMorgan Chase & Co.		1,944,615		3,272,816
	35,000	Kinnevik Investment AB, Cl. A		569,727		1,506,013
	125,000	Legg Mason Inc.		2,560,368		6,413,750
	95,900	Leucadia National Corp.		1,340,120		2,514,498
	14,000	Loews Corp.		558,454		616,140
	125,000	Marsh & McLennan Companies Inc.		3,772,923		6,477,500
	9,000	Moody’s Corp.		312,150		788,940
	22,000	Och-Ziff Capital Management Group LLC, Cl. A		214,559		304,260
	4,285	Royce Global Value Trust Inc.†		37,280		40,322
	124,100	State Street Corp.		4,346,707		8,346,966
	17,000	SunTrust Banks Inc.		358,050		681,020
	128,400	T. Rowe Price Group Inc.		3,946,862		10,838,244
	204,500	The Bank of New York Mellon Corp.		6,139,410		7,664,660
	20,000	The Charles Schwab Corp.		292,250		538,600
	12,300	The Dun & Bradstreet Corp.		292,691		1,355,460
	20,000	The Western Union Co.		283,994		346,800
	13,000	W. R. Berkley Corp.		476,775		602,030
	37,000	Waddell & Reed Financial Inc., Cl. A		825,958		2,315,830
	270,000	Wells Fargo & Co.		8,051,764		14,191,200
				69,927,806		146,124,969
		Cable and Satellite — 8.0%
	270,200	AMC Networks Inc., Cl. A†		11,472,643		16,614,598
	1,125,000	Cablevision Systems Corp., Cl. A		13,583,610		19,856,250
	86,400	Comcast Corp., Cl. A, Special		835,556		4,607,712
	374,200	DIRECTV†		14,482,393		31,810,742
	97,000	DISH Network Corp., Cl. A†		2,445,418		6,312,760
	30,440	EchoStar Corp., Cl. A†		956,094		1,611,494
	15,000	Intelsat SA†		294,642		282,600
	76,800	Liberty Global plc, Cl. A†		838,339		3,396,096
	238,600	Liberty Global plc, Cl. C†		2,873,797		10,095,166
	481,890	Rogers Communications Inc., Cl. B, New York		4,111,720		19,396,073
	19,310	Rogers Communications Inc., Cl. B, Toronto		137,424		777,069

See accompanying notes to financial statements.

5

The Gabelli Equity Trust Inc.

Schedule of Investments (Continued) — June 30, 2014 (Unaudited)

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Cable and Satellite (Continued)
	108,800	Scripps Networks Interactive Inc., Cl. A	$	3,513,944	$	8,828,032
	120,000	Shaw Communications Inc., Cl. B, New York		354,632		3,079,200
	40,000	Shaw Communications Inc., Cl. B, Toronto		52,983		1,025,631
	78,000	Time Warner Cable Inc.		5,766,544		11,489,400
				61,719,739		139,182,823
		Entertainment — 7.8%
	78,600	Discovery Communications Inc., Cl. A†		2,934,651		5,838,408
	83,100	Discovery Communications Inc., Cl. C†		1,328,223		6,032,229
	612,000	Grupo Televisa SAB, ADR		7,989,641		20,997,720
	32,000	Societe d’Edition de Canal +		34,011		271,669
	83,300	Starz, Cl. A†		330,827		2,481,507
	305,000	The Madison Square Garden Co., Cl. A†		5,463,532		19,047,250
	186,800	Time Warner Inc.		7,369,813		13,122,700
	41,000	Tokyo Broadcasting System Holdings Inc.		822,740		503,065
	585,200	Twenty-First Century Fox Inc., Cl. A		5,721,741		20,569,780
	367,000	Twenty-First Century Fox Inc., Cl. B		5,573,196		12,562,410
	75,000	Universal Entertainment Corp.		1,271,374		1,330,388
	289,500	Viacom Inc., Cl. A		13,568,454		25,114,125
	346,666	Vivendi SA		8,894,313		8,482,708
				61,302,516		136,353,959
		Equipment and Supplies — 6.7%
	454,000	AMETEK Inc.		3,260,560		23,735,120
	3,500	Amphenol Corp., Cl. A		12,928		337,190
	94,000	CIRCOR International Inc.		1,246,366		7,250,220
	374,800	Donaldson Co. Inc.		3,343,560		15,861,536
	274,600	Flowserve Corp.		3,730,565		20,416,510
	40,700	Franklin Electric Co. Inc.		229,059		1,641,431
	77,400	GrafTech International Ltd.†		750,724		809,604
	269,000	IDEX Corp.		7,414,410		21,719,060
	49,000	Ingersoll-Rand plc		1,050,094		3,062,990
	44,000	Mueller Industries Inc.		1,014,246		1,294,040
	13,000	Sealed Air Corp.		208,280		444,210
	45,000	Tenaris SA, ADR		1,981,220		2,121,750
	15,000	The Greenbrier Companies Inc.†		297,309		864,000
	4,000	The Manitowoc Co. Inc.		25,450		131,440
	85,000	The Timken Co.		4,534,031		5,766,400
	64,800	The Weir Group plc		272,671		2,904,422

Shares			Cost		Market Value
	132,000	Watts Water Technologies Inc., Cl. A	$	2,845,661	$	8,148,360
				32,217,134		116,508,283
		Energy and Utilities — 5.6%
	16,000	ABB Ltd., ADR		249,120		368,320
	37,000	Anadarko Petroleum Corp.		2,080,728		4,050,390
	59,000	Apache Corp.		2,771,519		5,936,580
	80,000	BP plc, ADR		3,952,168		4,220,000
	22,100	CMS Energy Corp.		141,190		688,415
	202,200	ConocoPhillips		9,359,464		17,334,606
	50,000	CONSOL Energy Inc.		1,876,269		2,303,500
	15,400	Duke Energy Corp.		837,476		1,142,526
	217,500	El Paso Electric Co.		4,977,269		8,745,675
	69,400	Exxon Mobil Corp.		2,391,496		6,987,192
	140,000	GenOn Energy Inc., Escrow†		0		0
	196,400	Halliburton Co.		3,831,496		13,946,364
	50,600	Kinder Morgan Inc.		1,453,014		1,834,756
	4,000	Marathon Oil Corp.		111,366		159,680
	4,000	Marathon Petroleum Corp.		142,402		312,280
	20,000	Murphy USA Inc.†		886,754		977,800
	5,000	National Fuel Gas Co.		375,876		391,500
	18,800	NextEra Energy Inc.		1,064,203		1,926,624
	1,000	Niko Resources Ltd.†		54,403		2,060
	40,000	Northeast Utilities		873,522		1,890,800
	32,400	Oceaneering International Inc.		437,629		2,531,412
	12,200	Phillips 66		900,010		981,246
	153,000	Rowan Companies plc, Cl. A		5,743,460		4,885,290
	28,000	RPC Inc.		363,509		657,720
	5,000	SJW Corp.		68,704		136,000
	17,000	Southwest Gas Corp.		389,070		897,430
	108,900	Spectra Energy Corp.		2,721,643		4,626,072
	55,500	The AES Corp.		309,163		863,025
	9,000	Transocean Ltd.		442,041		405,270
	35,000	Weatherford International plc†		503,431		805,000
	174,500	Westar Energy Inc.		2,904,704		6,664,155
				52,213,099		96,671,688
		Diversified Industrial — 5.5%
	3,000	Acuity Brands Inc.		76,507		414,750
	152,000	Ampco-Pittsburgh Corp.		1,976,139		3,486,880
	198,200	Crane Co.		4,752,758		14,738,152
	4,000	Eaton Corp. plc		205,117		308,720
	174,000	General Electric Co.		3,182,750		4,572,720
	146,300	Greif Inc., Cl. A		1,574,786		7,982,128
	12,897	Greif Inc., Cl. B		639,903		772,530
	32,000	Griffon Corp.		298,790		396,800
	359,000	Honeywell International Inc.		13,254,892		33,369,050
	122,000	ITT Corp.		1,468,866		5,868,200
	11,000	Jardine Strategic Holdings Ltd.		222,951		393,030
	2,000	Kennametal Inc.		77,640		92,560
	89,000	Park-Ohio Holdings Corp.		918,655		5,171,790
	35,000	Pentair plc		1,197,464		2,524,200

See accompanying notes to financial statements.

6

The Gabelli Equity Trust Inc.

Schedule of Investments (Continued) — June 30, 2014 (Unaudited)

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Diversified Industrial (Continued)
	9,667	Rayonier Advanced Materials Inc.†	$	160,779	$	374,583
	30,000	Rexnord Corp.†		630,867		844,500
	15,000	Sulzer AG		739,785		2,104,195
	15,000	Toray Industries Inc.		104,972		98,613
	10,000	Tredegar Corp.		136,250		234,100
	56,400	Trinity Industries Inc.		712,233		2,465,808
	217,000	Tyco International Ltd.		5,366,438		9,895,200
				37,698,542		96,108,509
		Health Care — 4.3%
	13,200	Actavis plc†		1,938,602		2,944,260
	10,000	Alere Inc.†		370,242		374,200
	10,000	Allergan Inc.		465,214		1,692,200
	32,700	Amgen Inc.		2,023,813		3,870,699
	29,400	Baxter International Inc.		1,533,417		2,125,620
	12,500	Becton, Dickinson and Co.		1,002,237		1,478,750
	24,700	Biogen Idec Inc.†		1,395,349		7,788,157
	275,000	Boston Scientific Corp.†		1,968,361		3,511,750
	76,300	Bristol-Myers Squibb Co.		1,919,054		3,701,313
	47,200	Covidien plc		1,684,393		4,256,496
	15,000	DaVita HealthCare Partners Inc.†		944,551		1,084,800
	10,000	Endo International plc†		320,069		700,200
	25,000	Express Scripts Holding Co.†		1,690,849		1,733,250
	28,800	Henry Schein Inc.†		999,862		3,417,696
	30,000	Hospira Inc.†		973,775		1,541,100
	37,000	Johnson & Johnson		2,400,670		3,870,940
	34,000	Mead Johnson Nutrition Co.		1,527,559		3,167,780
	95,200	Merck & Co. Inc.		2,219,590		5,507,320
	11,000	Nobel Biocare Holding AG		297,055		163,735
	88,200	Novartis AG, ADR		3,993,309		7,984,746
	15,000	Teva Pharmaceutical Industries Ltd., ADR		581,414		786,300
	87,000	UnitedHealth Group Inc.		4,489,729		7,112,250
	4,000	Waters Corp.†		285,470		417,760
	54,500	William Demant Holding A/S†		2,483,169		4,948,676
	8,600	Zimmer Holdings Inc.		435,897		893,196
	16,000	Zoetis Inc.		416,000		516,320
				38,359,650		75,589,514
		Automotive: Parts and Accessories — 4.3%
	116,600	BorgWarner Inc.		4,346,784		7,601,154
	113,800	CLARCOR Inc.		1,584,023		7,038,530
	215,000	Dana Holding Corp.		1,440,698		5,250,300
	245,000	Genuine Parts Co.		8,686,915		21,511,000
	160,600	Johnson Controls Inc.		3,803,198		8,018,758
	198,000	Modine Manufacturing Co.†		4,202,282		3,116,520
	94,000	O’Reilly Automotive Inc.†		3,549,938		14,156,400
	130,000	Standard Motor Products Inc.		1,345,271		5,807,100

Shares			Cost		Market Value
	70,000	Superior Industries International Inc.	$	1,405,635	$	1,443,400
				30,364,744		73,943,162
		Consumer Products — 3.8%
	115,000	Avon Products Inc.		2,221,952		1,680,150
	112,200	Blyth Inc.		1,778,539		872,916
	15,300	Christian Dior SA		579,339		3,044,078
	20,000	Church & Dwight Co. Inc.		66,357		1,399,000
	130,000	Coty Inc., Cl. A		2,077,262		2,226,900
	20,000	Crocs Inc.†		295,554		300,600
	95,500	Energizer Holdings Inc.		5,289,289		11,653,865
	2,100	Givaudan SA		725,396		3,502,368
	44,200	Hanesbrands Inc.		1,026,896		4,351,048
	23,800	Harley-Davidson Inc.		1,105,662		1,662,430
	6,000	Jarden Corp.†		91,909		356,100
	7,000	Mattel Inc.		115,920		272,790
	11,383	National Presto Industries Inc.		542,365		829,138
	10,000	Oil-Dri Corp. of America		171,255		305,700
	46,800	Reckitt Benckiser Group plc		1,420,403		4,084,748
	30,000	Svenska Cellulosa AB, Cl. B		404,760		781,705
	813,800	Swedish Match AB		9,022,328		28,257,156
	2,000	The Estee Lauder Companies Inc., Cl. A		72,261		148,520
				27,007,447		65,729,212
		Consumer Services — 3.2%
	14,334	Allegion plc		232,677		812,451
	45,000	IAC/InterActiveCorp.		1,149,873		3,115,350
	205,000	Liberty Interactive Corp., Cl. A†		3,861,726		6,018,800
	30,902	Liberty Ventures, Cl. A†		710,069		2,280,568
	1,210,000	Rollins Inc.		12,648,270		36,300,000
	192,000	The ADT Corp.		6,575,305		6,708,480
	8,000	TripAdvisor Inc.†		282,851		869,280
				25,460,771		56,104,929
		Retail — 3.1%
	70,600	AutoNation Inc.†		741,397		4,213,408
	10,000	Bed Bath & Beyond Inc.†		701,260		573,800
	41,700	Burger King Worldwide Inc.		647,621		1,135,074
	40,000	Costco Wholesale Corp.		1,843,960		4,606,400
	60,500	CST Brands Inc.		1,944,877		2,087,250
	120,000	CVS Caremark Corp.		4,075,042		9,044,400
	25,100	HSN Inc.		650,452		1,486,924
	50,000	J.C. Penney Co. Inc.†		644,777		452,500
	341,000	Macy’s Inc.		6,368,108		19,784,820
	11,000	Penske Automotive Group Inc.		441,111		544,500
	33,300	Sally Beauty Holdings Inc.†		264,056		835,164
	13,000	The Cheesecake Factory Inc.		380,728		603,460
	3,000	Tiffany & Co.		171,090		300,750
	52,000	Walgreen Co.		1,540,167		3,854,760
	36,100	Wal-Mart Stores Inc.		1,816,342		2,710,027

See accompanying notes to financial statements.

7

The Gabelli Equity Trust Inc.

Schedule of Investments (Continued) — June 30, 2014 (Unaudited)

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Retail (Continued)
	38,000	Whole Foods Market Inc.	$	457,708	$	1,467,940
				22,688,696		53,701,177
		Telecommunications — 3.1%
	55,400	BCE Inc.		1,226,373		2,512,944
	988,400	BT Group plc, Cl. A		4,087,138		6,510,733
	700,000	Cincinnati Bell Inc.†		3,430,473		2,751,000
	108,900	Deutsche Telekom AG, ADR		1,805,375		1,907,928
	36,000	Hellenic Telecommunications Organization SA†		452,922		532,384
	15,000	Hellenic Telecommunications Organization SA, ADR†		91,062		111,000
	264,732	Koninklijke KPN NV†		448,166		964,606
	7,040,836	LIME†(b)		128,658		19,515
	309,500	Oi SA, ADR		2,282,886		265,582
	29,000	Oi SA, Cl. C, ADR		265,522		28,043
	31,053	Sprint Corp.†		176,071		264,882
	21,000	Telecom Argentina SA, ADR		127,554		494,550
	600,000	Telecom Italia SpA†		2,342,466		759,962
	81,500	Telefonica Brasil SA, ADR		1,675,765		1,671,565
	597,315	Telefonica SA, ADR		9,146,761		10,249,925
	573,300	Telephone & Data Systems Inc.		24,644,307		14,968,863
	25,000	TELUS Corp.		233,734		931,775
	139,630	Verizon Communications Inc.		4,928,554		6,832,096
	41,482	Vodafone Group plc, ADR		1,993,421		1,385,084
				59,487,208		53,162,437
		Aerospace and Defense — 2.6%
	616,615	BBA Aviation plc		1,488,708		3,260,782
	225,600	Exelis Inc.		1,690,286		3,830,688
	35,800	Kaman Corp.		881,634		1,529,734
	17,500	Northrop Grumman Corp.		900,365		2,093,525
	1,200,000	Rolls-Royce Holdings plc		9,166,092		21,953,724
	160,800,000	Rolls-Royce Holdings plc, Cl. C†(b)(c)		269,790		275,192
	98,000	The Boeing Co.(a)		6,288,497		12,468,540
				20,685,372		45,412,185
		Business Services — 2.5%
	10,000	ACCO Brands Corp.†		70,117		64,100
	20,500	Aramark		481,192		530,540
	159,000	Clear Channel Outdoor Holdings Inc., Cl. A		1,158,502		1,300,620
	33,000	Contax Participacoes SA		67,778		237,325
	90,000	Diebold Inc.		3,224,800		3,615,300
	4,000	Edenred		57,883		121,293
	185,200	G4S plc		0		808,855
	17,300	Jardine Matheson Holdings Ltd.		565,935		1,026,063
	88,000	Landauer Inc.		2,472,818		3,696,000

Shares			Cost		Market Value
	8,000	Macquarie Infrastructure Co. LLC	$	428,773	$	498,960
	342,000	MasterCard Inc., Cl. A		3,293,995		25,126,740
	306,600	The Interpublic Group of Companies Inc.		3,030,380		5,981,766
	3,200	Visa Inc., Cl. A		140,800		674,272
				14,992,973		43,681,834
		Aviation: Parts and Services — 2.5%
	1,000	B/E Aerospace Inc.†		75,711		92,490
	270,300	Curtiss-Wright Corp.		8,489,994		17,720,868
	275,000	GenCorp Inc.†		2,370,094		5,252,500
	78,500	Precision Castparts Corp.		4,256,301		19,813,400
	2,000	Spirit AeroSystems Holdings Inc., Cl. A†		62,973		67,400
				15,255,073		42,946,658
		Machinery — 2.4%
	12,800	Caterpillar Inc.		86,323		1,390,976
	53,592	CNH Industrial NV		464,629		547,710
	320,000	Deere & Co.(a)		9,620,873		28,976,000
	289,600	Xylem Inc.		6,927,287		11,317,568
				17,099,112		42,232,254
		Specialty Chemicals — 1.9%
	17,000	Ashland Inc.		955,621		1,848,580
	15,000	Chemtura Corp.†		371,183		391,950
	20,000	E. I. du Pont de Nemours and Co.		899,328		1,308,800
	425,000	Ferro Corp.†		3,974,417		5,338,000
	8,000	FMC Corp.		136,430		569,520
	24,000	H.B. Fuller Co.		504,689		1,154,400
	8,000	Huntsman Corp.		185,439		224,800
	69,000	International Flavors & Fragrances Inc.		3,608,069		7,195,320
	250,000	OMNOVA Solutions Inc.†		1,510,743		2,272,500
	192,600	Sensient Technologies Corp.		4,877,366		10,731,672
	2,000	SGL Carbon SE†		68,557		65,795
	95,000	Zep Inc.		1,243,246		1,677,700
				18,335,088		32,779,037
		Hotels and Gaming — 1.8%
	16,000	Accor SA		549,282		832,315
	90,000	Genting Singapore plc		74,910		95,998
	8,000	Hyatt Hotels Corp., Cl. A†		263,258		487,840
	90,000	International Game Technology		1,387,772		1,431,900
	27,200	Interval Leisure Group Inc.		513,097		596,768
	990,600	Ladbrokes plc		4,587,508		2,378,511
	46,800	Las Vegas Sands Corp.		678,053		3,567,096
	3,655,600	Mandarin Oriental International Ltd.		6,859,684		6,963,918
	85,000	MGM China Holdings Ltd.		167,798		295,017
	25,000	MGM Resorts International†		258,037		660,000

See accompanying notes to financial statements.

8

The Gabelli Equity Trust Inc.

Schedule of Investments (Continued) — June 30, 2014 (Unaudited)

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Hotels and Gaming (Continued)
	45,000	Orient-Express Hotels Ltd., Cl. A†	$	621,367	$	654,300
	34,000	Pinnacle Entertainment Inc.†		161,420		856,120
	188,800	Ryman Hospitality Properties Inc.		5,121,573		9,090,720
	29,000	Starwood Hotels & Resorts Worldwide Inc.		446,065		2,343,780
	200,000	The Hongkong & Shanghai Hotels Ltd.		155,450		284,889
	4,000	Wyndham Worldwide Corp.		282,896		302,880
	2,000	Wynn Resorts Ltd.		61,976		415,120
				22,190,146		31,257,172
		Broadcasting — 1.7%
	253,300	CBS Corp., Cl. A, Voting		7,617,840		15,729,930
	2,000	Cogeco Inc.		39,014		103,107
	17,334	Corus Entertainment Inc., Cl. B, OTC		30,215		404,524
	6,666	Corus Entertainment Inc., Cl. B, Toronto		12,406		155,991
	25,000	Gray Television Inc.†		19,022		328,250
	89,000	Liberty Media Corp., Cl. A†		7,288,513		12,164,520
	24,000	LIN Media LLC, Cl. A†		353,520		654,000
	85,200	Television Broadcasts Ltd.		339,712		553,497
				15,700,242		30,093,819
		Publishing — 1.4%
	300	Graham Holdings Co., Cl. B		196,961		215,433
	100,000	Il Sole 24 Ore SpA†		198,073		119,266
	111,600	McGraw Hill Financial Inc.		4,595,648		9,266,148
	130,000	Media General Inc.†		1,142,790		2,668,900
	104,000	Meredith Corp.		4,447,393		5,029,440
	154,900	News Corp., Cl. A†		965,203		2,778,906
	148,600	News Corp., Cl. B†		1,640,044		2,593,070
	25,000	The E.W. Scripps Co., Cl. A†		157,281		529,000
	18,850	Time Inc.†		237,077		456,547
				13,580,470		23,656,710
		Electronics — 1.1%
	18,000	Bel Fuse Inc., Cl. A		524,289		442,440
	4,000	Hitachi Ltd., ADR		287,076		293,560
	60,000	Intel Corp.		1,289,364		1,854,000
	33,087	Koninklijke Philips NV		150,810		1,050,843
	2,400	Mettler-Toledo International Inc.†		337,271		607,632
	42,600	TE Connectivity Ltd.		1,656,580		2,634,384
	250,000	Texas Instruments Inc.		7,806,091		11,947,500
				12,051,481		18,830,359
		Environmental Services — 0.9%
	224,400	Republic Services Inc.		4,947,896		8,520,468

Shares			Cost		Market Value
	162,400	Waste Management Inc.	$	4,671,752	$	7,264,152
				9,619,648		15,784,620
		Wireless Communications — 0.9%
	110,800	America Movil SAB de CV, Cl. L, ADR		760,404		2,299,100
	3,000,000	Cable & Wireless Communications plc		2,397,576		2,528,580
	22,000	Millicom International Cellular SA, SDR		2,175,102		2,015,101
	150,000	NTT DoCoMo Inc.		2,980,751		2,564,533
	50,075	Tim Participacoes SA, ADR		371,251		1,453,677
	104,600	United States Cellular Corp.†		4,965,942		4,267,680
				13,651,026		15,128,671
		Computer Software and Services — 0.7%
	7,000	Check Point Software Technologies Ltd.†		118,774		469,210
	16,000	Electronic Arts Inc.†		229,669		573,920
	25,000	InterXion Holding NV†		367,395		684,500
	62,000	NCR Corp.†		757,681		2,175,580
	21,900	Rockwell Automation Inc.		695,220		2,741,004
	20,000	VeriFone Systems Inc.†		477,903		735,000
	160,000	Yahoo! Inc.†		3,580,869		5,620,800
				6,227,511		13,000,014
		Agriculture — 0.7%
	200,000	Archer Daniels Midland Co.		4,691,883		8,822,000
	17,000	Monsanto Co.		755,020		2,120,580
	12,800	Syngenta AG, ADR		186,484		957,440
	10,000	The Mosaic Co.		428,085		494,500
				6,061,472		12,394,520
		Communications Equipment — 0.7%
	54,000	Cisco Systems Inc.		1,060,702		1,341,900
	462,100	Corning Inc.		4,297,587		10,143,095
				5,358,289		11,484,995
		Automotive — 0.6%
	20,000	Ford Motor Co.		310,850		344,800
	24,000	General Motors Co.		957,168		871,200
	122,100	Navistar International Corp.†		3,045,534		4,576,308
	75,000	PACCAR Inc.		327,796		4,712,250
				4,641,348		10,504,558
		Metals and Mining — 0.6%
	37,400	Agnico Eagle Mines Ltd.		1,530,570		1,432,420
	110,000	Alcoa Inc.		1,014,118		1,637,900
	54,000	Barrick Gold Corp.		1,581,120		988,200
	12,000	Cliffs Natural Resources Inc.		173,550		180,600
	26,000	Freeport-McMoRan Copper & Gold Inc.		903,831		949,000
	4,800	Materion Corp.		108,162		177,552
	50,000	New Hope Corp. Ltd.		67,580		126,355

See accompanying notes to financial statements.

9

The Gabelli Equity Trust Inc.

Schedule of Investments (Continued) — June 30, 2014 (Unaudited)

Shares			Cost		Market Value
		COMMON STOCKS (Continued)
		Metals and Mining (Continued)
	143,600	Newmont Mining Corp.	$	5,120,536	$	3,653,184
	145,800	Turquoise Hill Resources Ltd.†		759,992		486,972
	12,000	Vale SA, ADR		215,984		158,760
				11,475,443		9,790,943
		Transportation — 0.5%
	139,800	GATX Corp.		4,452,896		9,358,212
		Real Estate — 0.4%
	35,000	Forest City Enterprises Inc., Cl. A†		682,620		695,450
	55,500	Griffin Land & Nurseries Inc.		529,368		1,637,250
	188,500	The St. Joe Co.†		3,663,453		4,793,555
				4,875,441		7,126,255
		Closed-End Funds — 0.3%
	30,000	Royce Value Trust Inc.		368,797		480,000
	96,486	The Central Europe, Russia, and Turkey Fund Inc.		2,625,436		2,826,075
	96,529	The New Germany Fund Inc.		1,243,890		1,800,267
				4,238,123		5,106,342
		Building and Construction — 0.2%
	5,000	Assa Abloy AB, Cl. B		257,665		254,432
	91,000	Fortune Brands Home & Security Inc.		858,328		3,633,630
	23,000	Layne Christensen Co.†		426,423		305,900
				1,542,416		4,193,962
		Real Estate Investment Trusts — 0.1%
	1,800	Camden Property Trust		33,741		128,070
	4,500	QTS Realty Trust Inc., Cl. A		94,500		128,835
	29,000	Rayonier Inc.		457,601		1,030,950
				585,842		1,287,855
		Computer Hardware — 0.1%
	7,000	International Business Machines Corp.		1,232,957		1,268,890
		Manufactured Housing and Recreational Vehicles — 0.1%
	5,000	Martin Marietta Materials Inc.		106,125		660,250
	30,000	Nobility Homes Inc.†		349,956		346,800
	53,000	Skyline Corp.†		565,692		217,830
				1,021,773		1,224,880
		TOTAL COMMON STOCKS		846,986,531		1,734,691,421
		CONVERTIBLE PREFERRED STOCKS — 0.1%
		Telecommunications — 0.1%
	21,000	Cincinnati Bell Inc., 6.750%, Ser. B		515,202		1,007,979

Shares			Cost		Market Value
		WARRANTS — 0.0%
		Energy and Utilities — 0.0%
	115,800	Kinder Morgan Inc., expire 05/25/17†	$	139,263	$	321,924
Principal Amount
		CONVERTIBLE CORPORATE BONDS — 0.1%
		Diversified Industrial — 0.1%
	$2,000,000	Griffon Corp., Sub. Deb., 4.000%, 01/15/17(d)		2,000,000		2,316,250
	TOTAL INVESTMENTS — 100.0%		$	849,640,996		1,738,337,574
Number of Contracts			Expiration Date		Unrealized Depreciation
		FUTURES CONTRACTS — SHORT POSITION
	105	S&P 500 E-Mini Futures(e)		09/19/14		(82,633	)

	Market Value
Other Assets and Liabilities (Net)		(1,895,785	)
PREFERRED STOCK
(9,369,257 preferred shares outstanding)		(334,131,425	)
NET ASSETS — COMMON STOCK
(191,839,279 common shares outstanding)	$	1,402,227,731
NET ASSET VALUE PER COMMON SHARE
($1,402,227,731 ÷ 191,839,279 shares outstanding)	$	7.31

(a) Securities, or a portion thereof, with a value of $57,610,750, were pledged as collateral for futures contracts.

(b) At June 30, 2014, the Fund held investments in restricted securities amounting to $294,707 or 0.02% of total investments, which were valued under methods approved by the Board of Directors as follows:

Acquisition Shares		Issuer	Acquisition Date		Acquisition Cost		06/30/14 Carrying Value Per Share
	7,040,836	LIME		09/30/93	$	128,658	$	0.0028
	160,800,000	Rolls-Royce     Holdings plc,     Cl. C		04/23/14		269,790		0.0017

(c) Illiquid security.

See accompanying notes to financial statements.

10

The Gabelli Equity Trust Inc.

Schedule of Investments (Continued) — June 30, 2014 (Unaudited)

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2014, the market value of the Rule 144A security amounted to $2,316,250 or 0.13% of total investments.

(e) At June 30, 2014, the Fund had entered into futures contracts with UBS AG.

† Non-income producing security.

ADR American Depositary Receipt

SDR Swedish Depositary Receipt

Geographic Diversification	% of Total Investments			Market Value
North America		81.4	%		$	1,415,461,352
Europe		14.2				246,676,190
Latin America		2.4				41,754,238
Japan		1.4				25,002,044
Asia/Pacific		0.6				9,443,750
Total Investments		100.0	%		$	1,738,337,574

See accompanying notes to financial statements.

11

The Gabelli Equity Trust Inc.

Statement of Assets and Liabilities

June 30, 2014 (Unaudited)

Assets:
Investments, at value (cost $849,640,996)	$	1,738,337,574
Dividends and interest receivable		2,655,126
Deferred offering expense		65,704
Prepaid expenses		13,095
Total Assets		1,741,071,499
Liabilities:
Payable to custodian		1,344,234
Distributions payable		171,633
Payable for investments purchased		331,277
Payable for investment advisory fees		1,788,558
Payable for payroll expenses		127,899
Payable for accounting fees		11,250
Payable for auction agent fees		873,578
Variation margin payable		1,466
Other accrued expenses		62,448
Total Liabilities		4,712,343
Cumulative Preferred Stock, $0.001 par value:
Series C (Auction Rate, $25,000 liquidation value, 5,200 shares authorized with 2,880 shares issued and outstanding)		72,000,000
Series D (5.875%, $25 liquidation value, 3,000,000 shares authorized with 2,363,860 shares issued and outstanding)		59,096,500
Series E (Auction Rate, $25,000 liquidation value, 2,000 shares authorized with 1,120 shares issued and outstanding)		28,000,000
Series G (5.000%, $25 liquidation value, 2,816,524 shares authorized with 2,814,424 shares issued and outstanding)		70,360,600
Series H (5.000%, $25 liquidation value, 4,200,000 shares authorized with 4,186,973 shares issued and outstanding)		104,674,325
Total Preferred Stock		334,131,425
Net Assets Attributable to Common Shareholders	$	1,402,227,731
Net Assets Attributable to Common Shareholders Consist of:
Paid-in capital	$	522,468,510
Distributions in excess of net investment income		(14,118	)
Distributions in excess of net realized gain on investments, futures contracts, and foreign currency transactions		(8,842,115	)
Net unrealized appreciation on investments		888,696,578
Net unrealized depreciation on futures contracts		(82,633	)
Net unrealized appreciation on foreign currency translations		1,509
Net Assets	$	1,402,227,731
Net Asset Value per Common Share:
($1,402,227,731 ÷ 191,839,279 shares outstanding at $0.001 par value; 246,000,000 shares authorized)		$7.31

Statement of Operations

For the Six Months Ended June 30, 2014 (Unaudited)

Investment Income:
Dividends (net of foreign withholding taxes of $302,873)	$	16,106,573
Interest		45,964
Total Investment Income		16,152,537
Expenses:
Investment advisory fees		8,383,445
Shareholder communications expenses		174,823
Shelf registration expense		125,352
Custodian fees		112,457
Directors’ fees		88,528
Payroll expenses		79,113
Shareholder services fees		70,208
Legal and audit fees		60,235
Accounting fees		22,500
Miscellaneous expenses		190,533
Total Expenses		9,307,194
Less:
Advisory fee reduction		(293,054	)
Advisory fee reduction on unsupervised assets (Note 3)		(696	)
Total Reductions		(293,750	)
Net Expenses		9,013,444
Net Investment Income		7,139,093
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts, and Foreign Currency:
Net realized gain on investments		15,390,394
Net realized loss on futures contracts		(815,863	)
Net realized loss on foreign currency transactions		(19,003	)
Net realized gain on investments, futures contracts, and foreign currency transactions		14,555,528
Net change in unrealized appreciation/depreciation:
on investments		55,096,346
on futures contracts		1,349,581
on foreign currency translations		865
Net change in unrealized appreciation/depreciation on investments, futures contracts, and foreign currency translations		56,446,792
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts, and Foreign Currency		71,002,320
Net Increase in Net Assets Resulting from Operations		78,141,413
Total Distributions to Preferred Shareholders		(6,128,183	)
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations	$	72,013,230

See accompanying notes to financial statements.

12

The Gabelli Equity Trust Inc.

Statement of Changes in Net Assets Attributable to Common Shareholders

	Six Months Ended June 30, 2014 (Unaudited)				Year Ended December 31, 2013
Operations:
Net investment income		$	7,139,093			$	10,363,229
Net realized gain on investments, futures contracts, and foreign currency transactions			14,555,528				150,550,588
Net change in unrealized appreciation on investments, futures contracts, and foreign currency translations			56,446,792				277,860,016
Net Increase in Net Assets Resulting from Operations			78,141,413				438,773,833
Distributions to Preferred Shareholders:
Net investment income			(2,036,912	)*			(1,017,365	)
Net realized gain			(4,091,271	)*			(11,754,664	)
Total Distributions to Preferred Shareholders			(6,128,183	)			(12,772,029	)
Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations			72,013,230				426,001,804
Distributions to Common Shareholders:
Net investment income			(4,581,874	)*			(9,326,302	)
Net realized gain			(9,163,747	)*			(107,756,321	)
Return of capital			(43,527,798	)*			—
Total Distributions to Common Shareholders			(57,273,419	)			(117,082,623	)
Fund Share Transactions:
Net increase in net assets from common shares issued upon reinvestment of distributions			9,042,602				18,998,599
Net increase in net assets from repurchase of preferred shares			9,067				44,806
Adjustment to offering costs for preferred shares credited to paid-in capital			—				22,605
Net Increase in Net Assets from Fund Share Transactions			9,051,669				19,066,010
Net Increase in Net Assets Attributable to Common Shareholders			23,791,480				327,985,191
Net Assets Attributable to Common Shareholders:
Beginning of year			1,378,436,251				1,050,451,060
End of period (including undistributed net investment income of $0 and $0, respectively)		$	1,402,227,731			$	1,378,436,251

* Based on year to date book income. Amounts are subject to change and recharacterization at year end.

See accompanying notes to financial statements.

13

The Gabelli Equity Trust Inc.

Financial Highlights

Selected data for a share outstanding throughout each period:

Six Months Ended June 30, 2014				Year Ended December 31,
(Unaudited)				2013			2012			2011			2010			2009
Operating Performance:
Net asset value, beginning of year	$	7.23		$	5.60		$	5.20		$	5.85		$	5.03		$	4.14
Net investment income		0.04			0.06			0.09			0.07			0.05			0.06
Net realized and unrealized gain/(loss) on investments, futures contracts, swap contracts, and foreign currency transactions		0.37			2.26			0.97			(0.08	)		1.35			1.62
Total from investment operations		0.41			2.32			1.06			(0.01	)		1.40			1.68
Distributions to Preferred Shareholders: (a)
Net investment income		(0.01	)*		(0.01	)		(0.03	)		(0.06	)		(0.05	)		(0.07	)
Net realized gain		(0.02	)*		(0.06	)		(0.05	)		(0.01	)		—			—
Return of capital		—			—			—			—			(0.02	)		—
Total distributions to preferred shareholders		(0.03	)		(0.07	)		(0.08	)		(0.07	)		(0.07	)		(0.07	)
Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders Resulting from Operations		0.38			2.25			0.98			(0.08	)		1.33			1.61
Distributions to Common Shareholders:
Net investment income		(0.02	)*		(0.05	)		(0.06	)		(0.02	)		—			(0.00	)(b)
Net realized gain		(0.05	)*		(0.57	)		(0.11	)		(0.00	)(b)		—			—
Return of capital		(0.23	)*		—			(0.39	)		(0.55	)		(0.51	)		(0.72	)
Total distributions to common shareholders		(0.30	)		(0.62	)		(0.56	)		(0.57	)		(0.51	)		(0.72	)
Fund Share Transactions:
Increase in net asset value from common stock share transactions		0.00	(b)		0.00	(b)		—			—			—			0.00	(b)
Increase in net asset value from repurchase of preferred shares		0.00	(b)		0.00	(b)		—			—			—			0.00	(b)
Recapture of gain on sale of Fund shares by an affiliate		—			—			—			—			0.00	(b)		—
Offering costs and adjustment to offering costs for preferred shares charged to paid-in capital		—			0.00	(b)		(0.02	)		—			—			—
Total Fund share transactions		0.00	(b)		0.00	(b)		(0.02	)		—			0.00	(b)		0.00	(b)
Net Asset Value Attributable to Common Shareholders, End of Period	$	7.31		$	7.23		$	5.60		$	5.20		$	5.85		$	5.03
NAV total return †		5.44	%		41.90	%		19.05	%		(1.17	)%		28.15	%		44.10	%
Market value, end of period	$	7.53		$	7.75		$	5.58		$	4.99		$	5.67		$	5.04
Investment total return ††		1.18	%		52.44	%		23.62	%		(2.15	)%		23.96	%		61.56	%
Ratios to Average Net Assets and Supplemental Data:
Net assets including liquidation value of preferred shares, end of period (in 000’s)	$	1,736,360		$	1,712,663		$	1,384,961		$	1,265,307		$	1,364,172		$	1,215,626
Net assets attributable to common shares, end of period (in 000’s)	$	1,402,228		$	1,378,436		$	1,050,451		$	959,950		$	1,058,815		$	910,269
Ratio of net investment income to average net assets attributable to common shares before preferred distributions		1.06	%(c)		0.84	%		1.54	%		1.26	%		0.92	%		1.53	%
Ratio of operating expenses to average net assets attributable to common shares:
before fee reduction		1.38	%(c)		1.40	%		1.48	%		1.48	%		1.50	%		1.74	%
net of fee reduction, if any		1.34	%(c)		1.40	%		1.48	%		1.19	%		1.50	%		1.72	%
Ratio of operating expenses to average net assets including liquidation value of preferred shares:
before fee reduction		1.11	%(c)		1.10	%		1.12	%		1.15	%		1.14	%		1.22	%
net of fee reduction, if any		1.07	%(c)		1.10	%		1.12	%		0.92	%		1.14	%		1.20	%
Portfolio turnover rate		2.1	%		10.0	%		4.2	%		6.3	%		5.5	%		6.7	%

See accompanying notes to financial statements.

14

The Gabelli Equity Trust Inc.

Financial Highlights (Continued)

Selected data for a share outstanding throughout each period:

		Six Months Ended June 30, 2014 (Unaudited)			Year Ended December 31,
					2013			2012			2011			2010			2009
Cumulative Preferred Stock:
Auction Rate Series C
Liquidation value, end of period (in 000’s)			$  72,000		$	72,000		$	72,000		$	72,000		$	72,000		$	72,000
Total shares outstanding (in 000’s)			3			3			3			3			3			3
Liquidation preference per share			$  25,000		$	25,000		$	25,000		$	25,000		$	25,000		$	25,000
Liquidation value(d)			$  25,000		$	25,000		$	25,000		$	25,000		$	25,000		$	25,000
Asset coverage per share			$129,916		$	128,106		$	103,507		$	103,593		$	111,687		$	99,525
5.875% Series D
Liquidation value, end of period (in 000’s)			$  59,097		$	59,097		$	59,097		$	59,097		$	59,097		$	59,097
Total shares outstanding (in 000’s)			2,364			2,364			2,364			2,364			2,364			2,364
Liquidation preference per share			$    25.00		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Average market value(e)			$    25.14		$	25.27		$	25.75		$	25.35		$	25.03		$	23.39
Asset coverage per share			$  129.92		$	128.11		$	103.51		$	103.59		$	111.69		$	99.53
Auction Rate Series E
Liquidation value, end of period (in 000’s)			$  28,000		$	28,000		$	28,000		$	28,000		$	28,000		$	28,000
Total shares outstanding (in 000’s)			1			1			1			1			1			1
Liquidation preference per share			$  25,000		$	25,000		$	25,000		$	25,000		$	25,000		$	25,000
Liquidation value(d)			$  25,000		$	25,000		$	25,000		$	25,000		$	25,000		$	25,000
Asset coverage per share			$129,916		$	128,106		$	103,507		$	103,593		$	111,687		$	99,525
6.200% Series F
Liquidation value, end of period (in 000’s)	��		—			—			—		$	146,260		$	146,260		$	146,260
Total shares outstanding (in 000’s)			—			—			—			5,850			5,850			5,850
Liquidation preference per share			—			—			—		$	25.00		$	25.00		$	25.00
Average market value(e)			—			—			—		$	25.57		$	25.71		$	24.08
Asset coverage per share			—			—			—		$	103.59		$	111.69		$	99.53
Series G
Liquidation value, end of period (in 000’s)			$  70,361		$	70,373		$	70,413			—			—			—
Total shares outstanding (in 000’s)			2,814			2,815			2,817			—			—			—
Liquidation preference per share			$    25.00		$	25.00		$	25.00			—			—			—
Average market value(e)			$    23.02		$	23.91		$	26.01			—			—			—
Asset coverage per share			$  129.92		$	128.11		$	103.51			—			—			—
5.000% Series H
Liquidation value, end of period (in 000’s)			$104,674		$	104,757		$	105,000			—			—			—
Total shares outstanding (in 000’s)			4,187			4,190			4,200			—			—			—
Liquidation preference per share			$    25.00		$	25.00		$	25.00			—			—			—
Average market value(e)			$    22.64		$	23.85		$	25.55			—			—			—
Asset coverage per share			$  129.92		$	128.11		$	103.51			—			—			—
Asset Coverage(f)			520	%		512	%		414	%		414	%		447	%		398	%

† For six months ended June 30, 2014 and the year ended 2013 based on net asset value per share, adjusted for reinvestment of distributions at net asset value on the ex-dividend date. The years ended 2012, 2011, 2010, and 2009 were based on net asset value per share, adjusted for reinvestment of distributions at prices obtained under the Fund’s dividend reinvestment plan. Total return for a period of less than one year is not annualized.

†† Based on market value per share, adjusted for reinvestment of distributions at prices determined under the Fund’s dividend reinvestment plan. Total return for a period of less than one year is not annualized.

* Based on year to date book income. Amounts are subject to change and recharacterization at year end.

(a) Calculated based upon average common shares outstanding on the record dates throughout the periods.

(b) Amount represents less than $0.005 per share.

(c) Annualized.

(d) Since February 2008, the weekly auctions have failed. Holders that have submitted orders have not been able to sell any or all of their shares in the auctions.

(e) Based on weekly prices.

(f) Asset coverage is calculated by combining all series of preferred stock.

See accompanying notes to financial statements.

15

The Gabelli Equity Trust Inc.

Notes to Financial Statements (Unaudited)

1. Organization. The Gabelli Equity Trust Inc. (the “Fund”) is a non-diversified closed-end management investment company organized as a Maryland corporation on May 20, 1986 and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), whose primary objective is long term growth of capital with income as a secondary objective. Investment operations commenced on August 21, 1986.

The Fund will invest at least 80% of its assets in equity securities under normal market conditions (the “80% Policy”). The 80% Policy may be changed without shareholder approval. The Fund will provide shareholders with notice at least sixty days prior to the implementation of any changes in the 80% Policy.

2. Significant Accounting Policies. The Fund’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Directors (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. Futures contracts are valued at the closing settlement price of the exchange or board of trade on which the applicable contract is traded.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S. dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

16

The Gabelli Equity Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

— Level 1 — quoted prices in active markets for identical securities;

— Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

— Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities and other financial instruments by inputs used to value the Fund’s investments as of June 30, 2014 is as follows:

	Valuation Inputs
	Level 1 Quoted Prices				Level 2 Other Significant Observable Inputs			Level 3 Significant Unobservable Inputs			Total Market Value at 6/30/14
INVESTMENTS IN SECURITIES:
ASSETS (Market Value):
Common Stocks:
Energy and Utilities		$	96,671,688				—		$	0		$	96,671,688
Aerospace and Defense			45,136,993				—			275,192			45,412,185
Other Industries (a)			1,592,607,548				—			—			1,592,607,548
Total Common Stocks			1,734,416,229				—			275,192			1,734,691,421
Convertible Preferred Stocks (a)			1,007,979				—			—			1,007,979
Warrants (a)			321,924				—			—			321,924
Convertible Corporate Bonds (a)			—				$2,316,250			—			2,316,250
TOTAL INVESTMENTS IN SECURITIES – ASSETS		$	1,735,746,132				$2,316,250			$275,192			$1,738,337,574
OTHER FINANCIAL INSTRUMENTS:*
LIABILITIES (Unrealized Depreciation):
EQUITY CONTRACTS
Futures Contracts Sold (b)		$	(82,633	)		$	—		$	—		$	(82,633	)

(a) Please refer to the Schedule of Investments (“SOI”) for the industry classifications of these portfolio holdings.

(b) Represents cumulative unrealized depreciation of futures contracts as reported in the SOI.

* Other financial instruments are derivatives reflected in the SOI, such as options, futures, forwards, and swaps, which may be valued at the unrealized appreciation/depreciation of the instrument.

The Fund did not have material transfers among Level 1, Level 2, and Level 3 during the six months ended June 30, 2014. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these

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Notes to Financial Statements (Unaudited) (Continued)

securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

    Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of increasing the income of the Fund, hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase, or hedging against a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

Collateral requirements differ by type of derivative. Collateral requirements are set by the broker or exchange clearing house for exchange traded derivatives, while collateral terms are contract specific for derivatives traded over-the-counter. Securities pledged to cover obligations of the Fund under derivative contracts are noted in the Schedule of Investments. Cash collateral, if any, pledged for the same purpose will be reported separately in the Statement of Assets and Liabilities.

The Fund’s policy with respect to offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the master agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

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The Fund’s derivative contracts held at June 30, 2014, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

    Swap Agreements. The Fund may enter into equity contract for difference swap transactions for the purpose of increasing the income of the Fund. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio security transactions. In an equity contract for difference swap, a set of future cash flows is exchanged between two counterparties. One of these cash flow streams will typically be based on a reference interest rate combined with the performance of a notional value of shares of a stock. The other will be based on the performance of the shares of a stock. Depending on the general state of short term interest rates and the returns on the Fund’s portfolio securities at the time an equity contract for difference swap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction.

During the six months ended June 30, 2014, the Fund held no investments in equity contract for difference swap agreements.

    Futures Contracts. The Fund may engage in futures contracts for the purpose of hedging against changes in the value of its portfolio securities and in the value of securities it intends to purchase. Upon entering into a futures contract, the Fund is required to deposit with the broker an amount of cash or cash equivalents equal to a certain percentage of the contract amount. This is known as the “initial margin.” Subsequent payments (“variation margin”) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are included in unrealized appreciation/depreciation on futures contracts. The Fund recognizes a realized gain or loss when the contract is closed.

There are several risks in connection with the use of futures contracts as a hedging instrument. The change in value of futures contracts primarily corresponds with the value of their underlying instruments, which may not correlate with the change in value of the hedged investments. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market. Open positions in futures contracts at June 30, 2014 are reflected within the Schedule of Investments.

The Fund’s volume of equity futures contracts held during the six months ended June 30, 2014 had an average monthly notional amount while outstanding of approximately $17,461,928.

At June 30, 2014, the Fund’s derivative liabilities (by type) are as follows:

		Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Gross Amounts of Recognized Liabilities Presented in the Statement of Assets and Liabilities	Gross Amounts Available for Offset in the Statement of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged		Net Amount
Liabilities
Futures Contracts	$1,466		—		—		—		$1,466

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Notes to Financial Statements (Unaudited) (Continued)

For the six months ended June 30, 2014, the effect of equity futures contracts can be found in the Statement of Operations under Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts, and Foreign Currency, Net realized loss on futures contracts, and Net change in unrealized appreciation/depreciation on futures contracts.

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (“CFTC”). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future, the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

Investments in Other Investment Companies. The Fund may invest, from time to time, in shares of other investment companies (or entities that would be considered investment companies but are excluded from the definition pursuant to certain exceptions under the 1940 Act) (the “Acquired Funds”) in accordance with the 1940 Act and related rules. Shareholders in the Fund would bear the pro rata portion of the periodic expenses of the Acquired Funds in addition to the Fund’s expenses. For the six months ended June 30, 2014, the Fund’s pro rata portion of the periodic expenses charged by the Acquired Funds was less than 1 basis point.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade

20

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Notes to Financial Statements (Unaudited) (Continued)

date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Restricted Securities. The Fund may invest up to 10% of its net assets in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. For the restricted securities the Fund held as of June 30, 2014, refer to the Schedule of Investments.

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

Custodian Fee Credits and Interest Expense. When cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as “Custodian fee credits.” When cash balances are overdrawn, the Fund is charged an overdraft fee equal to 110% of the 90 day Treasury Bill rate on outstanding balances. This amount, if any, would be included in the Statement of Operations.

Distributions to Shareholders. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities and

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Notes to Financial Statements (Unaudited) (Continued)

foreign currency transactions held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund.

Under the Fund’s current common share distribution policy, the Fund declares and pays quarterly distributions from net investment income, capital gains, and paid-in capital. The actual source of the distribution is determined after the end of the year. Pursuant to this policy, distributions during the year may be made in excess of required distributions. To the extent such distributions are made from current earnings and profits, they are considered ordinary income or long term capital gains. The Fund’s current distribution policy may restrict the Fund’s ability to pass through to shareholders all of its net realized long term capital gains as a Capital Gain Dividend and may cause such gains to be treated as ordinary income. Distributions sourced from paid-in capital should not be considered as dividend yield or the total return from an investment in the Fund. The Board will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s NAV and the financial market environment. The Fund’s distribution policy is subject to modification by the Board at any time.

Distributions to shareholders of the Fund’s Series C Auction Rate Cumulative Preferred Stock, 5.875% Series D Cumulative Preferred Stock, Series E Auction Rate Cumulative Preferred Stock, Series G Cumulative Preferred Stock, and 5.00% Series H Cumulative Preferred Stock (“Preferred Stock”) are recorded on a daily basis and are determined as described in Note 5.

The tax character of distributions paid during the year ended December 31, 2013 was as follows:

	Common		Preferred
Distributions paid from:
Ordinary income.	$	21,142,024	$	2,306,290
Net long term capital gains		95,940,599		10,465,739
Total distributions paid	$	117,082,623	$	12,772,029

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

As of December 31, 2013, the components of accumulated earnings/losses on a tax basis were as follows:

Net unrealized appreciation on investments, futures contracts, and foreign currency translations	$	820,059,398
Other temporary differences*		1,432,214
Total.	$	821,491,612

* Other temporary differences were primarily due to mark-to-market adjustments on futures contracts.

Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward for an unlimited period capital losses incurred. As a result of the rule, post enactment capital losses that are carried forward will retain their character as either short term or long term capital losses.

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The Gabelli Equity Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

The following summarizes the tax cost of investments and the related net unrealized appreciation at June 30, 2014:

	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation
Investments	$	849,640,996	$	915,525,930	$	(26,829,352	)	$	888,696,578

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. For the six months ended June 30, 2014, the Fund did not incur any income tax, interest, or penalties. As of June 30, 2014, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

3. Agreements and Transactions with Affiliates. The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of the Fund’s average weekly net assets including the liquidation value of preferred stock. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs.

The Adviser has agreed to reduce the management fee on the incremental assets attributable to the Series C, Series D, and Series E Preferred Stock (“C, D, and E Preferred Stock”) if the total return of the NAV of the common shares of the Fund, including distributions and advisory fee subject to reduction, does not exceed the stated dividend rate or corresponding swap rate of the C, D, and E Preferred Stock for the year. The Fund’s total return on the NAV of the common shares is monitored on a monthly basis to assess whether the total return on the NAV of the common shares exceeds the stated dividend rate of the C, D, and E Preferred Stock for the period. For the six months ended June 30, 2014, the Fund’s total return on the NAV of the common shares exceeded the dividend rate of the outstanding C and E Preferred Stock, but not on the outstanding D Preferred Stock. Thus, advisory fees were accrued on the liquidation value of the C and E Preferred Stock, and advisory fees on the liquidation value of the D Preferred Stock were reduced by $293,054.

During the six months ended June 30, 2014, the Fund paid brokerage commissions on security trades of $19,977 to G.research, Inc., an affiliate of the Adviser.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement between the Fund and the Adviser. During the six months ended June 30, 2014, the Fund paid or accrued $22,500 to the Adviser in connection with the cost of computing the Fund’s NAV.

As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser). For the six months ended June 30, 2014, the Fund paid or accrued $79,113 in payroll expenses in the Statement of Operations.

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Notes to Financial Statements (Unaudited) (Continued)

There was a reduction in the advisory fee paid to the Adviser relating to certain portfolio holdings, i.e., unsupervised assets, of the Fund with respect to which the Adviser transferred dispositive and voting control to the Fund’s Proxy Voting Committee. During the six months ended June 30, 2014, the Fund’s Proxy Voting Committee exercised control and discretion over all rights to vote or consent with respect to such securities, and the Adviser reduced its fee with respect to such securities by $696.

The Fund pays each Director who is not considered an affiliated person an annual retainer of $15,000 plus $2,000 for each Board meeting attended. Each Director is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000 per meeting attended. The Audit Committee Chairman receives an annual fee of $3,000, the Proxy Voting Committee Chairman receives an annual fee of $1,500, and the Nominating Committee Chairman and the Lead Director each receive an annual fee of $2,000. A Director may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Directors who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

4. Portfolio Securities. Purchases and sales of securities during the six months ended June 30, 2014, other than short term securities and U.S. Government obligations, aggregated $35,330,501 and $48,567,489, respectively.

5. Capital. The Fund’s Articles of Incorporation, as amended, permit the Fund to issue 246,000,000 shares of common stock (par value $0.001) and authorizes the Board to increase its authorized shares from time to time. The Board has authorized the repurchase of its shares on the open market when the shares are trading on the NYSE at a discount of 10% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the six months ended June 30, 2014 and the year ended December 31, 2013, the Fund did not repurchase any shares of its common stock in the open market.

Transactions in common shares were as follows:

	Six Months Ended June 30, 2014 (Unaudited)				Year Ended December 31, 2013
	Shares		Amount		Shares		Amount
Net increase from common shares issued upon reinvestment of distributions		1,235,151	$	9,042,602		2,888,148	$	18,998,599

A shelf registration authorizing the offering of an additional $500 million of common or preferred shares was declared effective by the SEC on May 22, 2013.

The Fund’s Articles of Incorporation, as amended, authorize the issuance of up to 18,000,000 shares of $0.001 par value Preferred Stock. The Preferred Stock is senior to the common stock and results in the financial leveraging of the common stock. Such leveraging tends to magnify both the risks and opportunities to common shareholders. Dividends on shares of the Preferred Stock are cumulative. The Fund is required by the 1940 Act and by the Articles Supplementary to meet certain asset coverage tests with respect to the Preferred Stock. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Series C, Series D, Series E, Series G, and Series H Preferred Stock at redemption prices of $25,000, $25, $25,000, $25, and $25, respectively, per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet these requirements. Additionally,

24

The Gabelli Equity Trust Inc.

Notes to Financial Statements (Unaudited) (Continued)

failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received on the Fund’s assets may vary in a manner unrelated to the fixed and variable rates, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.

For Series C and Series E Preferred Stocks, the dividend rates, as set by the auction process that is generally held every seven days, are expected to vary with short term interest rates. Since February 2008, the number of shares of Series C and Series E Preferred Stock subject to bid orders by potential holders has been less than the number of shares of Series C and Series E Preferred Stock subject to sell orders. Holders that have submitted sell orders have not been able to sell any or all of the Series C and Series E Preferred Stock for which they have submitted sell orders. Therefore the weekly auctions have failed, and the dividend rate has been the maximum rate. For Series C and Series E Preferred Stock, the maximum auction rate is 175% of the “AA” Financial Composite Commercial Paper Rate. Existing Series C and Series E shareholders may submit an order to hold, bid, or sell such shares on each auction date, or trade their shares in the secondary market.

The Fund may redeem at anytime, in whole or in part, the Series C, Series D, and Series E Preferred Stock at their respective redemption prices. In addition, the Board has authorized the repurchase of Series D Preferred Stock in the open market at prices less than the $25 liquidation value per share. During the six months ended June 30, 2014 and the year ended December 31, 2013, the Fund did not repurchase or redeem any shares of Series C, Series D, and Series E Preferred Stock.

Commencing July 31, 2017 and September 27, 2017, and anytimes thereafter, the Fund at its option, may redeem the Series G and Series H Preferred Stock, respectively, in whole or in part at the redemption price. In addition, the Board has authorized the repurchase of the Series G and Series H Preferred Stock in the open market at prices less than the $25 liquidation value per share. During the six months ended June 30, 2014, the Fund repurchased 500 shares and 3,300 shares of the Series G and Series H Preferred Stock, respectively.

The following table summarizes Cumulative Preferred Stock information:

Series	Issue Date		Issued/ Authorized		Number of Shares Outstanding at 06/30/2014		Net Proceeds			2014 Dividend Rate Range	Dividend Rate at 06/30/2014	Accrued Dividends at 06/30/2014
C Auction Rate		June 27, 2002		5,200		2,880		$	128,246,557	0.07% to 0.14%	0.123%		$	1,476
D 5.875%		October 7, 2003		3,000,000		2,363,860		$	72,375,842	Fixed Rate	5.875%		$	48,221
E Auction Rate		October 7, 2003		2,000		1,120		$	49,350,009	0.07% to 0.123%	0.123%		$	383
G 5.000%		August 1, 2012		2,816,524		2,814,424		$	69,812,243	Fixed Rate	5.000%		$	48,862
H 5.000%		September 28, 2012		4,200,000		4,186,973		$	101,167,500	Fixed Rate	5.000%		$	72,691

The holders of Preferred Stock generally are entitled to one vote per share held on each matter submitted to a vote of shareholders of the Fund and will vote together with holders of common stock as a single class. The holders of Preferred Stock voting together as a single class also have the right currently to elect two Directors and under certain circumstances are entitled to elect a majority of the Board of Directors. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the preferred stock, voting as a single class, will be required to approve any plan of reorganization adversely affecting the preferred stock, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding preferred stock and a majority (as defined in the

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Notes to Financial Statements (Unaudited) (Continued)

1940 Act) of the Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment objectives or fundamental investment policies.

6. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

7. Other Matters. On April 24, 2008, the Adviser entered into a settlement with the SEC to resolve an inquiry regarding prior frequent trading in shares of the GAMCO Global Growth Fund (the “Global Growth Fund”) by one investor who was banned from the Global Growth Fund in August 2002. Under the terms of the settlement, the Adviser, without admitting or denying the SEC’s findings and allegations, paid $16 million (which included a $5 million civil monetary penalty). On the same day, the SEC filed a civil action in the U.S. District Court for the Southern District of New York (the “Court”) against the Executive Vice President and Chief Operating Officer (the “Officer”) of the Adviser, alleging violations of certain federal securities laws arising from the same matter. On May 2, 2014, the SEC filed with the Court a stipulation of voluntary dismissal of the civil action against the Officer, and on June 19, 2014, the Court approved the stipulation and entered an order of dismissal of the action against the Officer. The settlement by the Adviser and the disposition of the action against the Officer did not have a material adverse impact on the Adviser or its ability to fulfill its obligations under the Advisory Agreement.

8. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

Shareholder Meeting – May 12, 2014 – Final Results

The Fund’s Annual Meeting of Shareholders was held on May 12, 2014 at the Greenwich Library in Greenwich, Connecticut. At that meeting, common and preferred shareholders, voting together as a single class, elected Frank J. Fahrenkopf, Jr. and Salvatore J. Zizza as Directors of the Fund. A total of 146,956,378 votes and 147,083,902 votes were cast in favor of these Directors, and a total of 4,491,225 votes and 4,363,701 votes were withheld for these Directors, respectively. In addition, preferred shareholders, voting as a separate class, elected Anthony J. Colavita as a Director of the Fund. A total of 7,863,888 votes were cast in favor of this Director and a total of 498,044 votes were withheld for this Director.

Mario J. Gabelli, CFA, James P. Conn, Arthur V. Ferrara, William F. Heitmann, and Anthony R. Pustorino continue to serve in their capacities as Directors of the Fund.

We thank you for your participation and appreciate your continued support.

Certifications

The Fund’s Chief Executive Officer has certified to the New York Stock Exchange (“NYSE”) that, as of June 11, 2014, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards. The Fund reports to the SEC on Form N-CSR which contains certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the 1940 Act.

26

The Gabelli Equity Trust Inc.

Board Consideration and Re-Approval of Investment Advisory Agreements (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), contemplates that the Board of Directors (the “Board”) of The Gabelli Equity Trust Inc. (the “Fund”), including a majority of the Directors who have no direct or indirect interest in the investment advisory agreement and are not “interested persons” of the Fund, as defined in the 1940 Act (the “Independent Board Members”), are required to annually review and re-approve the terms of the Fund’s existing investment advisory agreement and approve any newly proposed terms therein. In this regard, the Board reviewed and re-approved, during the most recent six month period covered by this report, the Investment Advisory Agreement (the “Advisory Agreement”) with Gabelli Funds, LLC (the “Adviser”) for the Fund.

More specifically, at a meeting held on May 13, 2014, the Board, including the Independent Board Members, considered the factors and reached the conclusions described below relating to the selection of the Adviser and the re-approval of the Advisory Agreement.

Nature, Extent, and Quality of Services.

The Independent Board Members considered the nature, quality, and extent of administrative and shareholder services performed by the Adviser, including portfolio management, supervision of Fund operations and compliance and regulatory filings and disclosures to shareholders, general oversight of other service providers, review of Fund legal issues, assisting the Independent Board Members in their capacity as directors, and other services. The Independent Board Members concluded that the services are extensive in nature and that the Adviser consistently delivered a high level of service.

Investment Performance of the Fund and Adviser.

The Independent Board Members considered short term and long term investment performance for the Fund over various periods of time as compared with relevant equity indices and the performance of other core, growth, and value equity closed-end funds included in the Lipper peer group. The Independent Board Members noted that the Fund’s total return performance was above the peer average and peer median for the one, three, five, and ten year periods ended March 31, 2014. The Independent Board Members concluded that the Adviser was delivering satisfactory performance results consistent with the investment strategies being pursued by the Fund.

Costs of Services and Profits Realized by the Adviser.

(a) Costs of Services to Fund: Fees and Expenses. The Independent Board Members considered the Fund’s management fee rate and expense ratio relative to industry averages for the Fund’s Lipper peer group category and the advisory fees charged by the Adviser and its affiliates to other fund and non-fund clients. The Independent Board Members noted that the mix of services under the Advisory Agreement is much more extensive than those under the advisory agreements for non-fund clients. The Independent Board Members noted that the “other non-management expenses” paid by the Fund are below the average and median for its peer group, but that the total expenses were above the average and median for peer funds and that management and gross advisory fees were at the high end of the peer group range. They took note of the fact that the use of leverage impacts comparative expenses to peer funds, not all of which utilize leverage. The Independent Board Members were aware that the Adviser waives its fee on the incremental liquidation value of the Fund’s Series C, Series D, and Series E preferred stock if the total return on net asset value of the common stock does not exceed the stated dividend rate or net swap expense for the Series C, Series D, and Series E preferred stock, as applicable, for the year after consideration of the reinvestment of distributions and the management fees attributable to the incremental liquidation value of the Series C, Series D, and Series E preferred stock, and that the comparative “total expense ratio” and “other expense” information reflected these waivers, if applicable. The Independent

27

The Gabelli Equity Trust Inc.

Board Consideration and Re-Approval of Investment Advisory Agreements (Unaudited) (Continued)

Board Members concluded that the fee is acceptable based upon the qualifications, experience, reputation, and performance of the Adviser.

(b) Profitability and Costs of Services to Adviser. The Independent Board Members considered the Adviser’s overall profitability and costs, and pro forma estimates of the Adviser’s profitability and costs attributable to the Fund as part of the Gabelli/GAMCO funds complex and assuming the Fund constituted the Adviser’s only investment company under its management. The Independent Board Members also considered whether the amount of profit is a fair entrepreneurial profit for the management of the Fund and noted that the Adviser has substantially increased its resources devoted to Fund matters in response to regulatory requirements and new or enhanced Fund policies and procedures. The Independent Board Members concluded that the absolute fee was reasonable despite the absence of breakpoints, particularly in light of the above average performance over time.

Extent of Economies of Scale as Fund Grows.

The Independent Board Members considered whether there have been economies of scale with respect to the management of the Fund and whether the Fund has appropriately benefited from any economies of scale. The Independent Board Members noted that economies of scale may develop for certain funds as their assets increase and their fund level expenses decline as a percentage of assets, but that fund level economies of scale may not necessarily result in Adviser level economies of scale.

Whether Fee Levels Reflect Economies of Scale.

The Independent Board Members also considered whether the management fee rate is reasonable in relation to the asset size of the Fund and any economies of scale that may exist, and concluded that the Fund’s current fee schedule (without breakpoints) was considered reasonable. Nonetheless, the Independent Board Members determined that Mr. Conn would reach out to the Adviser to discuss breakpoints for the Fund.

Other Relevant Considerations.

(a) Adviser Personnel and Methods. The Independent Board Members considered the size, education, and experience of the Adviser’s staff, the Adviser’s fundamental research capabilities, and the Adviser’s approach to recruiting, training, and retaining portfolio managers and other research and management personnel, and concluded that, in each of these areas, the Adviser was structured in such a way to support the high level of services being provided to the Fund.

(b) Other Benefits to the Adviser. The Independent Board Members also considered the character and amount of other incidental benefits received by the Adviser and its affiliates from its association with the Fund. The Independent Board Members considered the brokerage commissions paid to an affiliate of the Adviser. The Independent Board Members concluded that potential “fall-out” benefits that the Adviser and its affiliates may receive, such as affiliated brokerage commissions, greater name recognition, or increased ability to obtain research services, appear to be reasonable, and may in some cases benefit the Fund.

Conclusions.

In considering the Advisory Agreement, the Independent Board Members did not identify any factor as all important or all controlling, and instead considered these factors collectively in light of the Fund’s surrounding circumstances. Based on this review, it was the judgment of the Independent Board Members that shareholders had received satisfactory absolute and relative performance over time consistent with the investment strategies being pursued by the Fund at reasonable fees and, therefore, re-approval of the Agreement was in the best interests of the

28

The Gabelli Equity Trust Inc.

Board Consideration and Re-Approval of Investment Advisory Agreements (Unaudited) (Continued)

Fund and its shareholders. As a part of its decision making process, the Independent Board Members noted that the Adviser has managed the Fund since its inception, and the Independent Board Members believe that a long term relationship with a capable, conscientious adviser is in the best interests of the Fund. The Independent Board Members considered, generally, that shareholders invested in the Fund knowing that the Adviser managed the Fund and knowing its investment management fee schedule. As such, the Independent Board Members considered, in particular, whether the Adviser managed the Fund in accordance with its investment objectives and policies as disclosed to shareholders. The Independent Board Members concluded that the Fund was managed by the Adviser consistent with its investment objectives and policies.

29

AUTOMATIC DIVIDEND REINVESTMENT

AND VOLUNTARY CASH PURCHASE PLANS

Enrollment in the Plan

It is the policy of The Gabelli Equity Trust Inc. (the “Fund”) to automatically reinvest dividends payable to common shareholders. As a “registered” shareholder, you automatically become a participant in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”). The Plan authorizes the Fund to credit shares of common stock to participants upon an income dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants may send their stock certificates to Computershare Trust Company, N.A. (“Computershare”) to be held in their dividend reinvestment account. Registered shareholders wishing to receive their distribution in cash must submit this request in writing to:

The Gabelli Equity Trust Inc.

c/o Computershare

P.O. Box 30170

College Station, TX 77842-3170

Shareholders requesting this cash election must include the shareholder’s name and address as they appear on the share certificate. Shareholders with additional questions regarding the Plan or requesting a copy of the terms of the Plan may contact Computershare at (800) 336-6983.

If your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution is not participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such institution, it may be necessary for you to have your shares taken out of “street name” and re-registered in your own name. Once registered in your own name, your dividends will be automatically reinvested. Certain brokers participate in the Plan. Shareholders holding shares in “street name” at participating institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change.

The number of shares of common stock distributed to participants in the Plan in lieu of cash dividends is determined in the following manner. Under the Plan, whenever the market price of the Fund’s common stock is equal to or exceeds net asset value at the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains distribution, participants are issued shares of common stock valued at the greater of (i) the net asset value as most recently determined or (ii) 95% of the then current market price of the Fund’s common stock. The valuation date is the dividend or distribution payment date or, if that date is not a New York Stock Exchange (“NYSE”) trading day, the next trading day. If the net asset value of the common stock at the time of valuation exceeds the market price of the common stock, participants will receive shares from the Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, Computershare will buy common stock in the open market, or on the NYSE or elsewhere, for the participants’ accounts, except that Computershare will endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following the commencement of such purchases, the market value of the common stock exceeds the then current net asset value.

The automatic reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which may be payable on such distributions. A participant in the Plan will be treated for federal income tax purposes as having received, on a dividend payment date, a dividend or distribution in an amount equal to the cash the participant could have received instead of shares.

Voluntary Cash Purchase Plan

The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.

Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to Computershare for investments in the Fund’s shares at the then current market price. Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. Computershare will charge each shareholder who participates $0.75, plus a pro rata share of the brokerage commissions. Brokerage charges for such purchases are expected to be less than the usual brokerage charge for such transactions. It is suggested that any voluntary cash payments be sent to Computershare, P.O. Box 43010, Providence, RI 02940–3010 such that Computershare receives such payments approximately 10 days before the 1st and 15th of the month. Funds not received at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn without charge if notice is received by Computershare at least 48 hours before such payment is to be invested.

Shareholders wishing to liquidate shares held at Computershare must do so in writing or by telephone. Please submit your request to the above mentioned address or telephone number. Include in your request your name, address, and account number. The cost to liquidate shares is $2.50 per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage charge for such transactions.

For more information regarding the Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the Fund.

The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by Computershare on at least 90 days written notice to participants in the Plan.

30

THE GABELLI EQUITY TRUST INC.

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. that he founded in 1977 and Chief Investment Officer – Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

Christopher J. Marangi joined Gabelli in 2003 as a research analyst. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Funds Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA with honors from Columbia Business School.

Kevin V. Dreyer joined Gabelli in 2005 as a research analyst covering companies within the consumer sector. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Funds Complex. Mr. Dreyer received a BSE from the University of Pennsylvania and an MBA from Columbia Business School.

We have separated the portfolio managers’ commentary from the financial statements and investment portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that the content of the portfolio managers’ commentary is unrestricted. The financial statements and investment portfolio are mailed separately from the commentary. Both the commentary and the financial statements, including the portfolio of investments, will be available on our website at www.gabelli.com.

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “General Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “General Equity Funds.”

The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.

The NASDAQ symbol for the Net Asset Value is “XGABX.”

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may, from time to time, purchase its common shares in the open market when the Fund’s shares are trading at a discount of 10% or more from the net asset value of the shares. The Fund may also, from time to time, purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.

THE GABELLI EQUITY TRUST INC.

One Corporate Center

Rye, NY 10580-1422

t 800-GABELLI (800-422-3554)

f 914-921-5118

e info@gabelli.com

GABELLI.COM

DIRECTORS   Mario J. Gabelli, CFA Chairman & Chief Executive Officer, GAMCO Investors, Inc.   Anthony J. Colavita President, Anthony J. Colavita, P.C.   James P. Conn Former Managing Director & Chief Investment Officer, Financial Security Assurance Holdings Ltd.   Frank J. Fahrenkopf, Jr. Former President & Chief Executive Officer, American Gaming Association   Arthur V. Ferrara Former Chairman & Chief Executive Officer, Guardian Life Insurance Company of America   William F. Heitmann Former Senior Vice President of Finance, Verizon Communications, Inc.   Anthony R. Pustorino Certified Public Accountant, Professor Emeritus, Pace University   Salvatore J. Zizza Chairman, Zizza & Associates Corp. OFFICERS   Bruce N. Alpert President   Andrea R. Mango Secretary & Vice President   Agnes Mullady Treasurer   Richard J. Walz Chief Compliance Officer   Carter W. Austin Vice President   Molly A.F. Marion Vice President & Ombudsman   David I. Schachter Vice President   INVESTMENT ADVISER   Gabelli Funds, LLC One Corporate Center Rye, New York 10580-1422   CUSTODIAN   The Bank of New York Mellon   COUNSEL   Willkie Farr & Gallagher LLP   TRANSFER AGENT AND REGISTRAR   Computershare Trust Company, N.A.

GAB Q2/2014

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed registrants.

Not applicable.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR.

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

REGISTRANT PURCHASES OF EQUITY SECURITIES

Period	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Unit)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that  May Yet Be Purchased Under the Plans or Programs
Month #1   01/01/14 through 01/31/14	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – 190,604,128 Preferred Series D – 2,363,860 Preferred Series G – 2,814,924 Preferred Series H – 4,190,273
Month #2 02/01/14 through 02/28/14	Common – N/A Preferred Series D – N/A Preferred Series G – 500 Preferred Series H – 3,300	Common – N/A Preferred Series D – N/A Preferred Series G – $22.30 Preferred Series H – $22.65	Common – N/A Preferred Series D – N/A Preferred Series G – 500 Preferred Series H – 3,300	Common – 190,604,128 Preferred Series D – 2,363,860 Preferred Series G – 2,814,424 Preferred Series H – 4,186,973
Month #3 03/01/14 through 03/31/14	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – 191,218,620 Preferred Series D – 2,363,860 Preferred Series G – 2,814,424 Preferred Series H – 4,186,973
Month #4 4/01/14 through 4/30/14	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – 191,218,620 Preferred Series D – 2,363,860 Preferred Series G – 2,814,424 Preferred Series H – 4,186,973
Month #5 5/01/14 through 5/31/14	Common – N/A Preferred Series D – N/A	Common – N/A Preferred Series D – N/A	Common – N/A Preferred Series D – N/A	Common – 191,218,620 Preferred Series D – 2,363,860

	Preferred Series G – N/A Preferred Series H – N/A	Preferred Series G – N/A Preferred Series H – N/A	Preferred Series G – N/A Preferred Series H – N/A	Preferred Series G – 2,814,424 Preferred Series H – 4,186,973
Month 6/01/14 through 6/30/14	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – N/A Preferred Series D – N/A Preferred Series G – N/A Preferred Series H – N/A	Common – 191,839,279 Preferred Series D – 2,363,860 Preferred Series G – 2,814,424 Preferred Series H – 4,186,973
Total	Common – N/A Preferred Series D – N/A Preferred Series G – 500 Preferred Series H – 3,300	Common – N/A Preferred Series D – N/A Preferred Series G – $22.30 Preferred Series H – $22.65	Common – N/A Preferred Series D – N/A Preferred Series G – 500 Preferred Series H – 3,300	N/A

Footnote columns (c) and (d) of the table, by disclosing the following information in the aggregate for all plans or programs publicly announced:

a. The date each plan or program was announced – The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended.

b. The dollar amount (or share or unit amount) approved – Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 10% or more from the net asset value of the shares.

Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00.

c. The expiration date (if any) of each plan or program – The Fund’s repurchase plans are ongoing.

d. Each plan or program that has expired during the period covered by the table – The Fund’s repurchase plans are ongoing.

e. Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases. – The Fund’s repurchase plans are ongoing.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Directors, where those changes were implemented after the

registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

(a)  The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)  There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Not applicable.
(a)(2)	Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3)	Not applicable.
(b)	Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)     The Gabelli Equity Trust Inc.
By (Signature and Title)*	/s/ Bruce N. Alpert
	Bruce N. Alpert, Principal Executive Officer
Date    9/4/2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)*	/s/ Bruce N. Alpert
	Bruce N. Alpert, Principal Executive Officer
Date    9/4/2014
By (Signature and Title)*	/s/ Agnes Mullady
	Agnes Mullady, Principal Financial Officer and Treasurer
Date    9/4/2014

* Print the name and title of each signing officer under his or her signature.